1 00:00:00,240 --> 00:00:04,140 We will now continue to work with the fixed range profile, but for range 2 00:00:04,140 --> 00:00:08,440 trading. We have already seen this example where we were able to identify a 3 00:00:08,440 --> 00:00:12,500 successful bullish breakout test on the VAH and VPOC of the structure. 4 00:00:13,400 --> 00:00:17,560 This time, we are going to deal with one of the most important issues, which is 5 00:00:17,560 --> 00:00:20,900 how to correctly launch manual profiles in this type of contexts. 6 00:00:21,740 --> 00:00:26,180 The scopes of the profile should include the entire price action from the time 7 00:00:26,180 --> 00:00:28,820 the rotation starts until the time of the breakout. 8 00:00:29,470 --> 00:00:33,870 Unfortunately, there will be times when we may not be entirely sure that we are 9 00:00:33,870 --> 00:00:37,990 doing this correctly, as the market is often very erratic and identifying the 10 00:00:37,990 --> 00:00:40,550 boundaries of the profile can become a complex task. 11 00:00:41,170 --> 00:00:46,170 To solve this, I will explain two types of techniques, an objective one, whose 12 00:00:46,170 --> 00:00:51,070 correct application should not create any doubt, and a subjective one, where 13 00:00:51,070 --> 00:00:54,830 final decision on the location of the profile will ultimately be up to us. 14 00:00:55,630 --> 00:01:00,070 What we need to do is identify the total highs and lows of the lateralization. 15 00:01:00,470 --> 00:01:04,890 These levels will determine where the manual profile will be drawn from and 16 00:01:05,930 --> 00:01:09,090 First, we mark the high that occurred before the breakout. 17 00:01:09,530 --> 00:01:14,490 In this case, it is at the end and almost coincides with the upward 18 00:01:14,490 --> 00:01:15,089 the breakout. 19 00:01:15,090 --> 00:01:19,090 But in many other cases, the high of the structure will be identified in its 20 00:01:19,090 --> 00:01:20,570 initial part or in the middle. 21 00:01:21,150 --> 00:01:23,110 How do we determine when the breakout occurs? 22 00:01:23,820 --> 00:01:27,940 we must project the line to the right and the moment any candlestick closes 23 00:01:27,940 --> 00:01:31,980 above it and we begin to observe some space between the candlesticks and the 24 00:01:31,980 --> 00:01:35,520 level, we will begin to treat that action as a potential breakout. 25 00:01:36,140 --> 00:01:40,160 At first, it will always be conditional because we do not know if this action 26 00:01:40,160 --> 00:01:43,100 will eventually become a breakout or remain a false breakout. 27 00:01:43,660 --> 00:01:47,140 So, when will we be able to determine that we are looking at a false breakout? 28 00:01:47,580 --> 00:01:52,380 At the very least, we will need to see the price actually re -enter below the 29 00:01:52,380 --> 00:01:54,550 level. i .e., generate some acceptance. 30 00:01:55,110 --> 00:01:58,790 There is no definitive way to determine what constitutes acceptance. 31 00:01:59,210 --> 00:02:03,910 The most objective way to determine this is to wait for the price to close a few 32 00:02:03,910 --> 00:02:05,430 candlesticks below the level. 33 00:02:05,730 --> 00:02:10,509 The more candlesticks we see it close below the level, the more acceptance we 34 00:02:10,509 --> 00:02:12,090 have that it is a false breakout. 35 00:02:12,830 --> 00:02:16,830 In this example, there are a few times when the price tries to re -enter below 36 00:02:16,830 --> 00:02:20,450 the level, but none of the times it manages to do so effectively. 37 00:02:21,359 --> 00:02:25,740 Therefore, the candlestick on which we will set the end of the fixed range will 38 00:02:25,740 --> 00:02:29,040 be the bullish candlestick immediately to the right of the structure's highest 39 00:02:29,040 --> 00:02:33,020 high, since the next bullish candlestick will close above that high. 40 00:02:33,800 --> 00:02:37,220 We will now identify the lowest low of the entire range. 41 00:02:37,760 --> 00:02:40,040 First, we will use the objective technique. 42 00:02:40,380 --> 00:02:44,780 We go through the same sequence. We identify the low and confirm that it is 43 00:02:44,780 --> 00:02:47,940 extreme by projecting the line left and right. 44 00:02:48,560 --> 00:02:53,260 A priori it might seem that the lowest point is the one marked, but after 45 00:02:53,260 --> 00:02:57,920 throwing the line, we see that there is a point in the price to the left that 46 00:02:57,920 --> 00:02:58,920 exceeds it. 47 00:02:59,040 --> 00:03:03,180 This tells us that the level we initially set is not the lowest level of 48 00:03:03,180 --> 00:03:04,180 entire structure. 49 00:03:05,060 --> 00:03:09,360 Following the same logic, we do the same with the new low we identified earlier. 50 00:03:09,880 --> 00:03:14,580 What happens is that to the left of this level, there is still more price action 51 00:03:14,580 --> 00:03:15,960 in contact with the line. 52 00:03:16,360 --> 00:03:20,880 So in absolute terms, we cannot consider this to be the lowest low of the entire 53 00:03:20,880 --> 00:03:21,880 structure. 54 00:03:22,220 --> 00:03:26,800 In fact, the lowest low of this lateralization would technically be this 55 00:03:27,120 --> 00:03:28,740 Why this level and not another? 56 00:03:29,260 --> 00:03:32,100 Simply because there is nothing to the left of the price. 57 00:03:32,800 --> 00:03:37,020 This is the key to identifying the lows for these types of structures that come 58 00:03:37,020 --> 00:03:38,260 from a previous uptrend. 59 00:03:38,740 --> 00:03:43,240 The absolute low will be the level that once projected to the left and right 60 00:03:43,240 --> 00:03:45,320 does not identify any lower lows. 61 00:03:45,820 --> 00:03:49,920 and that in the left projection no price action is observed that is in contact 62 00:03:49,920 --> 00:03:53,600 above and below the level, as is the case in this example. 63 00:03:54,420 --> 00:03:58,360 And that would be the profile that we would get with the technique that we 64 00:03:58,820 --> 00:04:03,460 This technique is the most objective that we can use for this task, which is 65 00:04:03,460 --> 00:04:07,340 to say that it is the best way to do it, or the one that best represents the 66 00:04:07,340 --> 00:04:10,120 information that we really want to capture with the volume profile. 67 00:04:10,780 --> 00:04:12,160 And that is important to remember. 68 00:04:12,720 --> 00:04:14,660 What are we really trying to capture? 69 00:04:15,470 --> 00:04:17,430 Why are we throwing out a range profile? 70 00:04:18,350 --> 00:04:22,210 What we want to identify is the distribution of volume within the price 71 00:04:22,210 --> 00:04:23,710 where the buyers and sellers are trading. 72 00:04:24,250 --> 00:04:28,430 This trading at the aggregate level creates the price rotation up and down 73 00:04:28,430 --> 00:04:30,070 creates this equilibrium context. 74 00:04:30,430 --> 00:04:31,530 And that's the point. 75 00:04:32,010 --> 00:04:36,630 If what we want to analyze is equilibrium, is this the most 76 00:04:36,630 --> 00:04:37,630 draw profiles? 77 00:04:37,790 --> 00:04:41,590 Is the beginning of the profile really considered an equilibrium zone? 78 00:04:42,530 --> 00:04:44,930 This is actually a very complex example. 79 00:04:45,410 --> 00:04:49,150 I chose it on purpose to help us understand the logic behind profiling. 80 00:04:49,690 --> 00:04:53,990 If we learn how to handle complex scenarios, we will be prepared to handle 81 00:04:53,990 --> 00:04:55,310 simpler scenarios with ease. 82 00:04:55,930 --> 00:05:00,010 The technique we have just seen will be effective in most cases, but not all. 83 00:05:00,530 --> 00:05:05,110 By this we mean that in most areas the beginning of the profile will also be 84 00:05:05,110 --> 00:05:06,730 beginning of the equilibrium context. 85 00:05:07,310 --> 00:05:09,570 But this is not the case in this example. 86 00:05:10,090 --> 00:05:14,210 as we can see a first well -channeled uptrend part before the real rotation 87 00:05:14,210 --> 00:05:19,090 starts. I repeat, there is nothing wrong with using the volume profile plot in 88 00:05:19,090 --> 00:05:23,370 this way, but let's say it is not the most effective way for the purpose we 89 00:05:23,370 --> 00:05:24,710 looking for in all situations. 90 00:05:25,330 --> 00:05:29,430 The purpose is to start the profile from the beginning of the equilibrium and 91 00:05:29,430 --> 00:05:31,670 not before, as is the case here. 92 00:05:32,610 --> 00:05:36,770 Therefore, in this type of situation, if we want to get the most genuine 93 00:05:36,770 --> 00:05:41,890 profile, we should apply some logic to the reasoning and subjectively modify 94 00:05:41,890 --> 00:05:42,890 outline of the profile. 95 00:05:43,750 --> 00:05:47,190 This would be the most efficient way to plot this particular profile. 96 00:05:47,630 --> 00:05:52,490 The upper limit remains the same and for the lower limit, what we do is visually 97 00:05:52,490 --> 00:05:56,790 identify what would be the most appropriate support level for that range 98 00:05:56,790 --> 00:05:59,110 on the number of touches that the line might have. 99 00:05:59,490 --> 00:06:01,310 That is the subjective technique. 100 00:06:01,830 --> 00:06:06,510 From there, we project that support to the left and anchor the start of the 101 00:06:06,510 --> 00:06:09,970 profile on the first candlestick that appears above that level. 102 00:06:10,730 --> 00:06:15,330 This is a discretionary method, but it better represents the essence of 103 00:06:15,330 --> 00:06:20,310 profiling. In this case, we can agree that the start of the profile is closer 104 00:06:20,310 --> 00:06:21,830 the start of the breakeven zone. 105 00:06:22,570 --> 00:06:27,530 In this way, we forget about the lows of the candlestick and simply identify the 106 00:06:27,530 --> 00:06:32,720 most objective support level that may exist, which, as we know, will be the 107 00:06:32,720 --> 00:06:34,900 that has had the most contact with the price. 108 00:06:35,840 --> 00:06:39,820 And this would be the profile we would obtain by applying this second form. 109 00:06:40,340 --> 00:06:44,880 As I said, without considering the first form as erroneous, the second form 110 00:06:44,880 --> 00:06:49,440 seems to me to represent more faithfully what we are looking for, although it is 111 00:06:49,440 --> 00:06:54,440 true that it can also be more complex since it involves a slight subjectivity 112 00:06:54,440 --> 00:06:56,340 the determination of the support of the structure. 113 00:06:57,230 --> 00:07:01,870 We should also point out that this type of manual profiles in areas must be 114 00:07:01,870 --> 00:07:06,010 continuously updated until the break event that marks the end of the profile 115 00:07:06,010 --> 00:07:07,010 trace occurs. 116 00:07:07,910 --> 00:07:11,510 Let's take another example, this time for an accumulative structure. 117 00:07:12,210 --> 00:07:16,350 In setting the upper limit, we see that the price has left two highs practically 118 00:07:16,350 --> 00:07:17,470 above the same level. 119 00:07:17,770 --> 00:07:22,490 So we project to the left and to the right to verify that there is no further 120 00:07:22,490 --> 00:07:24,210 price action that touches the level. 121 00:07:25,070 --> 00:07:29,550 In this way, we determine that any price action below the level represents a 122 00:07:29,550 --> 00:07:33,350 sideways, range -bound, or market equilibrium context. 123 00:07:34,330 --> 00:07:38,590 This is what we really want to capture when we try to identify the boundaries 124 00:07:38,590 --> 00:07:40,290 the structure to start the profile. 125 00:07:41,030 --> 00:07:43,870 There is also no doubt about the lower boundary. 126 00:07:44,250 --> 00:07:48,350 There is one that is clearly lower than the rest, and to the left and to the 127 00:07:48,350 --> 00:07:50,290 right, obviously, nothing is observed. 128 00:07:50,910 --> 00:07:54,310 In accumulative structures, this will always be the case. 129 00:07:54,810 --> 00:07:58,230 By pure logic, the lower boundary will always be clearly identified. 130 00:07:58,690 --> 00:08:02,490 The difficulty with these types of structures will always be in defining 131 00:08:02,490 --> 00:08:03,490 upper part. 132 00:08:03,990 --> 00:08:08,070 Some may think that it would be convenient to use the subjective 133 00:08:08,070 --> 00:08:09,590 identify the high of the structure. 134 00:08:10,410 --> 00:08:14,870 As we can see, and based on what has been commented on how to identify these 135 00:08:14,870 --> 00:08:18,970 support and resistance levels, the line that has more touches will always be the 136 00:08:18,970 --> 00:08:21,810 one that is created in a discretionary or subjective way. 137 00:08:22,590 --> 00:08:27,170 What we have to evaluate is which of the two techniques is more useful to 138 00:08:27,170 --> 00:08:30,110 capture the beginning and end of the equilibrium context. 139 00:08:30,850 --> 00:08:35,090 In this case, although the subjective technique creates a line with more 140 00:08:35,090 --> 00:08:40,030 touches, in my opinion, the objective one creates the most useful boundaries 141 00:08:40,030 --> 00:08:44,510 this work, and in this case, it would be the one we should use for profiling. 142 00:08:45,110 --> 00:08:49,550 The recent move higher appears to be initially acting as a false breakout 143 00:08:49,550 --> 00:08:50,550 previous highs. 144 00:08:50,940 --> 00:08:54,280 It is an action that has occurred during the development of the entire 145 00:08:54,280 --> 00:08:58,320 structure, so I think it would be most convenient to include it in the profile 146 00:08:58,320 --> 00:08:59,320 as well. 147 00:08:59,640 --> 00:09:03,260 And this is what the profile distribution would look like in this 148 00:09:03,500 --> 00:09:05,720 A fairly balanced D -shaped type. 149 00:09:06,160 --> 00:09:10,720 Now, once we are in a situation of an effective potential bullish breakout, we 150 00:09:10,720 --> 00:09:14,740 need to project the trading levels to the right in order to wait for a 151 00:09:14,740 --> 00:09:17,300 on them that could offer us a buying trade opportunity. 152 00:09:18,060 --> 00:09:22,140 In this way, we could take advantage of a potential bullish effect following 153 00:09:22,140 --> 00:09:23,440 this accumulative cause. 154 00:09:24,180 --> 00:09:28,760 And we see that the opportunity appeared just above the first trade level, above 155 00:09:28,760 --> 00:09:30,360 the high level of the value zone. 156 00:09:30,720 --> 00:09:35,280 We had to zoom in on the image a bit because the market went quite a distance 157 00:09:35,280 --> 00:09:37,120 the upside before revisiting the structure. 158 00:09:37,780 --> 00:09:42,040 This fact in itself, that it moved further away from the equilibrium zone, 159 00:09:42,200 --> 00:09:43,760 should not be taken into account. 160 00:09:44,330 --> 00:09:47,730 For the purpose of what we are concerned with, which is to look for potential 161 00:09:47,730 --> 00:09:52,250 trades with the levels of the structure, these levels would still be fully valid 162 00:09:52,250 --> 00:09:55,750 regardless of whether the market took more or less time to visit them. 163 00:09:56,530 --> 00:09:58,950 Now we have an example of distributive structures. 164 00:09:59,490 --> 00:10:04,310 Unlike the cumulative ones, here the level that will always be clear is the 165 00:10:04,310 --> 00:10:08,730 of the structure. In fact, we could save its identification because the key is 166 00:10:08,730 --> 00:10:12,270 in the lower level, which is the one that interacts with the price from both 167 00:10:12,270 --> 00:10:17,190 sides. As for the low, In this case, there is no great difficulty in 168 00:10:17,190 --> 00:10:22,450 it. We project left and right and analyze the interaction of price and 169 00:10:22,450 --> 00:10:23,249 both sides. 170 00:10:23,250 --> 00:10:27,630 On the left side, there is no kind of movement that can make us doubt, as the 171 00:10:27,630 --> 00:10:29,330 market is in a clear uptrend. 172 00:10:29,710 --> 00:10:34,450 And on the right side, since this is where the breakout occurs, our task here 173 00:10:34,450 --> 00:10:37,330 to determine at what time we consider the beginning of the breakout. 174 00:10:37,910 --> 00:10:41,290 As we can see, this is not difficult to do in this example. 175 00:10:41,630 --> 00:10:45,940 In addition, we see that after the start of the breakout, the market moves down 176 00:10:45,940 --> 00:10:47,900 several levels, leaving some distance. 177 00:10:48,260 --> 00:10:52,100 This is another trace that provides the end of the equilibrium context. 178 00:10:53,280 --> 00:10:57,340 Note that we have used the objective technique to identify the lowest low. 179 00:10:57,640 --> 00:11:01,960 But if we used the subjective technique, the final level would not be very 180 00:11:01,960 --> 00:11:05,460 different and therefore the beginning and the end of the profile would be 181 00:11:05,460 --> 00:11:06,480 practically the same. 182 00:11:07,240 --> 00:11:11,180 As I said, there will be times when there is a big difference between these 183 00:11:11,180 --> 00:11:15,270 techniques. and others when there is not so much, as in this example. 184 00:11:16,130 --> 00:11:19,530 This is what the profile would look like between the opening and closing 185 00:11:19,530 --> 00:11:24,170 candlesticks. In distributive structures, the levels on which to wait 186 00:11:24,170 --> 00:11:28,490 appearance of our entry trigger are the value area low and the VPOC. 187 00:11:29,310 --> 00:11:34,030 In this case, after breaking the lower part of the range, the market retests 188 00:11:34,030 --> 00:11:38,590 broken structure and stops just at the lower part of the profile, at the VAL. 189 00:11:39,030 --> 00:11:43,820 From there, a new selling initiative appears, turning the market and giving a 190 00:11:43,820 --> 00:11:44,820 new bearish impulse. 191 00:11:45,280 --> 00:11:48,720 The market could have re -entered the range and we could still wait for the 192 00:11:48,720 --> 00:11:52,580 possible reaction on the VPOC to continue looking for this bearish 193 00:11:53,520 --> 00:11:58,180 In this potential situation, the anatomy of the bullish move that brings the 194 00:11:58,180 --> 00:12:01,960 price back into the value zone and the subsequent reaction that happens at the 195 00:12:01,960 --> 00:12:06,720 VPOC will be key to determine if it is still viable to look for bearish 196 00:12:06,720 --> 00:12:11,510 continuation at the VPOC or if it is a failed price breakout from the downside, 197 00:12:11,830 --> 00:12:15,630 in which case we would not expect further visits to lower prices. 198 00:12:16,510 --> 00:12:19,870 Let us now turn to an example of a redistribution structure. 199 00:12:20,270 --> 00:12:24,330 It is the examples of reaccumulation and redistribution that raise the most 200 00:12:24,330 --> 00:12:28,350 doubts because there is an interaction between the price and the level at both 201 00:12:28,350 --> 00:12:30,310 extremes, the upper and the lower. 202 00:12:30,890 --> 00:12:35,490 In this case, at the top, because the previous trend is bearish, and at the 203 00:12:35,490 --> 00:12:37,830 bottom, because the breakout is also bearish. 204 00:12:38,140 --> 00:12:42,520 In other words, at both extremes, we need to use the techniques we have 205 00:12:42,520 --> 00:12:43,900 to correctly identify them. 206 00:12:44,460 --> 00:12:49,260 As we can see, fortunately, it is not very difficult because it has two clear 207 00:12:49,260 --> 00:12:53,420 turning points at both ends and does not generate any interaction that could 208 00:12:53,420 --> 00:12:54,179 raise doubts. 209 00:12:54,180 --> 00:12:58,660 On the left side, the price enters the equilibrium zone cleanly, and on the 210 00:12:58,660 --> 00:13:02,940 right side, the price also leaves it cleanly, leaving enough room to 211 00:13:02,940 --> 00:13:05,020 treat this action as a bearish breakout. 212 00:13:05,960 --> 00:13:10,880 And this is what the profile distribution would look like. As we can 213 00:13:10,880 --> 00:13:15,160 the bearish breakout developed, the price returned to the area between the 214 00:13:15,160 --> 00:13:19,940 and VPOC, from where it had a strong reaction that led to the continuation of 215 00:13:19,940 --> 00:13:20,940 the bearish trend. 216 00:13:21,720 --> 00:13:24,640 Let's go with another potential reaccumulation chart. 217 00:13:24,860 --> 00:13:29,860 It has not yet had the effect of the cause, but as an example of profiling, 218 00:13:29,860 --> 00:13:30,860 is very useful. 219 00:13:31,080 --> 00:13:35,260 On the upper boundary, we see two inflection points at almost the same 220 00:13:35,610 --> 00:13:39,050 which allows us to easily determine the high of the equilibrium zone. 221 00:13:39,430 --> 00:13:43,610 We project to the right and see that the potential bullish breakout has already 222 00:13:43,610 --> 00:13:47,470 occurred, so we can definitely confirm where the end of the profile will be. 223 00:13:47,770 --> 00:13:52,390 At the bottom, we can easily identify the lowest low of the entire sideways 224 00:13:52,390 --> 00:13:56,950 movement. If we project the line to the left, we can see that there is another 225 00:13:56,950 --> 00:14:01,650 equilibrium zone interacting with this level at the end, which might cause us 226 00:14:01,650 --> 00:14:04,990 doubt whether this price action should be included in the profile or not. 227 00:14:05,640 --> 00:14:10,240 If we objectively analyze this behavior, we see that most of it is below the 228 00:14:10,240 --> 00:14:13,340 level, so in my opinion, it should not be included in the profile. 229 00:14:14,320 --> 00:14:18,220 They really seem to be different structures. Both are developed at 230 00:14:18,220 --> 00:14:21,120 price levels, so they should have independent profiles. 231 00:14:21,640 --> 00:14:26,580 This is very important and we need to understand it. What we want to capture 232 00:14:26,580 --> 00:14:30,520 the equilibrium zone, the zone that represents the ultimate prevailing 233 00:14:30,520 --> 00:14:34,960 condition. And to do that, the profile should be as horizontal as possible. 234 00:14:35,440 --> 00:14:39,860 a context where the price action is horizontal, is the highest 235 00:14:39,860 --> 00:14:41,220 a true equilibrium zone. 236 00:14:42,300 --> 00:14:46,560 Imagine this other situation where the minor structure identified with the blue 237 00:14:46,560 --> 00:14:48,740 box is at higher levels than the original ones. 238 00:14:49,040 --> 00:14:53,460 Here I would consider that everything corresponds to the same lateralization, 239 00:14:53,460 --> 00:14:57,400 the same equilibrium zone. That is why the price levels at which the range 240 00:14:57,400 --> 00:14:58,640 occurs are so important. 241 00:14:59,220 --> 00:15:03,820 If we project the level that identifies the low to the left, we see how it would 242 00:15:03,820 --> 00:15:06,000 cross all this small equilibrium zone. 243 00:15:06,520 --> 00:15:07,900 This would not be correct. 244 00:15:08,140 --> 00:15:13,060 On the other hand, if we project the lowest low of the whole set, we see that 245 00:15:13,060 --> 00:15:17,440 does not interact with any other price action to the left of it. So this is 246 00:15:17,440 --> 00:15:19,540 definitely the correct way to draw the profile. 247 00:15:20,340 --> 00:15:25,520 It is true that overall it shows a slight upward slope, but that should not 248 00:15:25,520 --> 00:15:28,000 reason to discard the use of this type of profile. 249 00:15:28,420 --> 00:15:30,300 The market is dynamic and changing. 250 00:15:30,650 --> 00:15:33,950 and there will not always be a perfect balance of supply and demand forces. 251 00:15:35,030 --> 00:15:38,830 Occasionally, the equilibrium zones will be slightly unbalanced to one side or 252 00:15:38,830 --> 00:15:40,850 the other. There is nothing wrong with that. 253 00:15:41,670 --> 00:15:46,130 After focusing on this aspect, this would be the profile we would get from 254 00:15:46,130 --> 00:15:47,130 last sideways movement. 255 00:15:47,710 --> 00:15:51,830 As we said, it is already in a position to confirm or reject the bullish 256 00:15:51,830 --> 00:15:55,690 breakout action. Depending on the trading levels, we should wait for the 257 00:15:55,690 --> 00:15:59,470 to break above the VAH to evaluate a potential buying opportunity. 258 00:16:00,560 --> 00:16:04,900 As we have seen, the movement that restarts the broken structure usually 259 00:16:04,900 --> 00:16:06,920 above the extreme of the value area. 260 00:16:07,320 --> 00:16:11,500 However, we have already noted that the trading levels above which we can expect 261 00:16:11,500 --> 00:16:14,880 a price reaction are both these extremes and the VPOC. 262 00:16:15,800 --> 00:16:19,220 In this chart, we will see an example of a test on the VPOC. 263 00:16:19,960 --> 00:16:22,600 We begin by identifying the limits of the profile. 264 00:16:23,160 --> 00:16:27,360 Due to the nature of the structure, we only need to identify the upper end of 265 00:16:27,360 --> 00:16:28,329 the range. 266 00:16:28,330 --> 00:16:31,990 We might think that the subjective plotting technique is the best option. 267 00:16:32,190 --> 00:16:36,330 But just like in the previous example, because we had the new high that 268 00:16:36,330 --> 00:16:40,250 ultimately remained as a shock, all the price action that was subsequently 269 00:16:40,250 --> 00:16:44,590 generated at the levels marked with the blue box should be included in the 270 00:16:44,590 --> 00:16:49,010 profile. This is why the objective technique is again the most useful. 271 00:16:49,690 --> 00:16:54,110 The key is that all the behavior that ultimately remains as a shock should be 272 00:16:54,110 --> 00:16:55,110 included in the profile. 273 00:16:55,770 --> 00:16:59,070 Again, when do we confirm that it is a false breakout behavior? 274 00:16:59,630 --> 00:17:03,690 Well, when several candlesticks close on the other side of the level as marked 275 00:17:03,690 --> 00:17:04,690 in the red box. 276 00:17:04,910 --> 00:17:09,589 In addition, after the projection, we see that enough distance has already 277 00:17:09,589 --> 00:17:13,130 generated on the right side to treat this movement as a potential effective 278 00:17:13,130 --> 00:17:14,130 breakout. 279 00:17:15,030 --> 00:17:18,550 This would be the profile that would correspond to such a lateralization. 280 00:17:18,810 --> 00:17:24,079 As we can see, after the breakout event, The market pulls back to the VAH and 281 00:17:24,079 --> 00:17:28,400 has a first reaction to the upside, but the bearish pressure was so strong that 282 00:17:28,400 --> 00:17:32,300 they managed to send the price to the high equilibrium zone represented by the 283 00:17:32,300 --> 00:17:33,300 VPOC. 284 00:17:33,640 --> 00:17:37,660 There appears to be enough demand to slow the price and push it back up with 285 00:17:37,660 --> 00:17:38,660 some aggressiveness. 286 00:17:38,940 --> 00:17:43,800 The key is that the VPOC will always be our last trading level to consider for 287 00:17:43,800 --> 00:17:48,460 the scenario approach, and as long as the price remains in favor of it, we 288 00:17:48,460 --> 00:17:50,300 be able to look for our trading opportunity. 289 00:17:51,570 --> 00:17:55,670 Finally, let's comment on this particular case where we have made a 290 00:17:55,670 --> 00:17:57,650 between plotting range and trend profiles. 291 00:17:58,430 --> 00:18:02,490 In this case, I have plotted the range profile using the subjective technique 292 00:18:02,490 --> 00:18:06,630 because I believe the multiple touches more faithfully represent the lower 293 00:18:06,630 --> 00:18:11,370 limit. The peculiarity of this example is that we have also started another 294 00:18:11,370 --> 00:18:15,190 profile of the last bearish impulse, from the high to the low. 295 00:18:15,470 --> 00:18:17,990 We can do this for all the ranges we analyze. 296 00:18:18,250 --> 00:18:23,130 In general, The trading levels we will identify from both profiles will be very 297 00:18:23,130 --> 00:18:27,790 similar. We see how after the bearish breakout event occurs, the market pulls 298 00:18:27,790 --> 00:18:32,790 back into the VPOC zone of both profiles, from where it initiates a new 299 00:18:32,790 --> 00:18:33,749 impulse. 300 00:18:33,750 --> 00:18:37,910 Although ideally, and what will happen most of the time, the price will pull 301 00:18:37,910 --> 00:18:39,690 back to the border of the value area. 302 00:18:40,030 --> 00:18:44,330 The key to using the volume profile is that the continuation after breakout 303 00:18:44,330 --> 00:18:47,530 scenario can be maintained as long as the VPOC holds. 304 00:18:48,110 --> 00:18:51,910 This will be the last level we should consider for this continuation trade.